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If ender paragraph iR Isereof the Property is solr! ar the Propert ~ is otherwise acquired by Lct;de;r, Lender
<br />,hell apply, na later than i:umediataly prior to tar sale of the Propcr(p or its ruquiaition Ly Lenler.:,n}- hund~~
<br />head by Lender at the Cnue of application as n ert~lit against the sums secured by this Jlortgagt~.
<br />3. Appkeation of Paymenis. Unless applicnhfc late provides othertviac, all Itasux+n t:: rcorivcd by Lender
<br />under tl:e Aote and par•agral;hs 1 and 2 bercaf shalt he applied l,c Lcndrr first in payment of amoums payable to
<br />Lender by $orrower under paragraph 2 hereof, tl.en to interest. pad=ah{e ors the Rafe. and c;n huturc Adv.rrtces, iE
<br />any=, and then to the principal of the i\otc anti to r-{se principal of Future .1dt•ances, if auy.
<br />~. Charges; Liens. Borrower shall pay all taxes, asse.5snreuts and other charge=, fines and impositions attrib-
<br />utable to the Property which may attain a priority aver this yorgage, and grounc' rents, if any, at bender's
<br />option in ti;e manner prowrded under paragraph ~ hereof m• i+y Iorrower making paytneni, when dve. directly to
<br />the payee thereof.. Borrower sha11 promptly Cornish to Lender all notices of amounts due under this paragraph,
<br />and in the event Borrower shall make payment directly, Borrower shall prom}+tly furnish to I,r-nder receipts evi-
<br />dencing such payments. Borrower shall promptly discharge any Tien which has priority aver this \iortgage; pro-
<br />vidstl, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to
<br />the payment of the obligation secured by such lien in a manner acceptable to Lender; or ehall in goad faith contest
<br />,~,~" such lien 6y, or defend enforcement of such lien in, legal proceedings which operate to prevent the en#orcr_ment o€
<br />the lien or forfeiture of the Property or any part Thereof.
<br />5. Hazard Tnsuztmce. &ormwer shall keep the improvements non- existing or hereafter erected on the Prop-
<br />erty insured against loss by fire; hazards included within the "term "extended coverage", and sorb other hazards as
<br />Lender may require and in such amounts and for such periods as I.ende!• stay require; provided, that Lender shall
<br />'°' not require that the amount of such coverage exceed that amount of coverage required to pa}• the sums secured'by
<br />this !A'artgage.
<br />~ The insurance carrier providing the insurance shall be chosen by Borrower subject to approve! by Lender;
<br />1` provided, that such approval shall not be unreasonably withheld. Ali premiums on insurance policies shall be paid
<br />at "Lender's option in the manner provided under paragraph 2 herecf or by Harrower making payment, when due,
<br />directly to the insurance carrier.
<br />In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such sum shall become
<br />immediately due and payable with interest at the ratz set forth in said note until paid and shall be
<br />secured by this Mortgage. Failure by Borrower to comply map, at option of Lender, constitute a default
<br />under the terms of this Mortgage.
<br />AI! insurance poGaies and renewals thereof shall he in form acceptable to Lender and shall srclude a standard
<br />mortgage clause in favor of and in form seceptsrble to Lender. Lender sha1I have the ri>;' to bald the policies and
<br />renewals thereo#, and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid pre-
<br />miums. In the event of loss, Borrower shall give prompt notire to the insurance carrier and Lender, and Lander
<br />may make proof of foss if not made promptly by Borrower.
<br />Unless Lender and Borrower othertcise agree in ;rritirrg, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, provided suet: restoratior, ar repair is economically feasible and the securiip of
<br />this \Ior•Ggage is not thereby impaired. If such restoration or repair is not ecoratnic:rlly feasible or if the security
<br />of this 3'Iortgage would be impaired, the insurance proceeds shah i,r applies, to thr sums secured by this Mortgage,
<br />with the excess, if any, paid to Borrower. If the Property is ahanu;med ;+v Berran-er or if Borrower fails to respond
<br />to Lender within 3fl days after notice by Lender to Borrower that *_he insurance carrier Deers to settle a claim rA~
<br />insurance benefits. Lender is authorized to collect and aUph- the insurzutce nraceeds at mender's option either to
<br />restoration or repair of the Properly or to the sums secured by this ~Iortgagc.
<br />Unless Lender and Borrower othenvise agree in writing, any suer, anplicaiion of proceeds to prhtAipal shall
<br />not extend or postpone the due date of the rnoni141y installments referred to ist paragraphs I and 2 hereof ar change
<br />the amount of such ir_stallments.
<br />If under paragraph 18 hereof the Property is acquired by Lender, a}i right, title and interest of Borrower in
<br />and to soy insurance policies and in and to the proceeds therreat (ta the extent of the sums secured by this itlort-
<br />gaga immediately prior to such sale ar acquisitions resulting from damage to the Property prior to the sale or
<br />acquisition shslr pass to Lender.
<br />& Preseroatioa oast Maialeaaace oI Property; Leaseholds; Condomiaiums. Borrower stral9 keep the Prap-
<br />ertp in goad repair and shall not aerrrit ar carnmit waste. impairment, or deterioration of the Property and shall
<br />eomgly with the previsions of app ?ease, if this '+Iartgage is an a leasehold. If this ~Iortgsge is on a condominium
<br />unit, Harrower shalt perform ail of Borrower's abiigatio.ts tinder the declaration of condominium ar master deed,
<br />t.lie by-la..s and regulatiar,s a. `i;e Cundan;iniu:n praje-ct atad constituent documents.
<br />7. Protection ssf Lsndei s Sectuitg. Ii Borrower Tails to perform the covenants and agreements contained in
<br />this ortgage, or if any action ac proceeding is commenced which msteri2lly affects Lender's interest in the Prop-
<br />erty, including, but not limited to, entinert domain, insoirenc}•, Cade enforcement, ar arrangemepts or proceed-
<br />ings involving a bankrupt or decedent, titer Lender at Lender's option, upon notice to Borrower, may make such
<br />sppesrsnces, disburse such sums end take such action as is necessary to protect. Lender's interest, including, but
<br />not limwd ta, disbursement of reasonabi2 attorney`s fens and entry upon the Prcperty to make repairs. Any
<br />amounts disbursed by Letrder pursuant to this paragraph ?, with interest thereon, shell become additional indebt-
<br />edness of Horrower secured by this Mortgage. Unless Borrower and Lender agree in other terms of payment, such
<br />amounts shall be payable upon notice front Lender to Borrower requesting payment thereof, and shall hear izrter-
<br />est from the date of disbursement ist the rate stated in the \ate unless psyRrrent of interest at such rate would be
<br />contrary to applicable law, in which event such amounts shall Tress interest at the highest rate permissible by
<br />applicable law. '_~TOthing captained in this paragraph ; siurll require Lender to incur any expense or do any act
<br />hereunder.
<br />8, bsspeetion. Lender may make ar cause to he made reasonable entries upon and inspections of the Prop-
<br />erty, provided that Lender shall .give Borrower notice ,friar to env such inspection epeeifying reasonable cause
<br />therefor related to Lender's interest ip the Property.
<br />3. Cordffmaatiesn: T`he proceeds of any award or maim for damages, direct or consequential, in connection
<br />with my eordenirrr;tion cr oilrer ta~sing of the Properly, ar pert Thereof, or for conveyance in Heir of condemns-
<br />Clete, are hereby assigned and shall be paid to Lender.
<br />Indioev*_'ntof a,tatal taking of the Property, the proceeds shall Ise applied to the sums secured by this ~4lort-
<br />g3gei: e k+h tie ~u..ss; if -any, paid to Borrower. In. tlic event of a partial taking of ilia Property, unle~ Borrower
<br />anal! Lender otherwise agree: in writing; there shall lie applied to the-sums secured by this I4lortgsge such propor-
<br />t"son of the proceeds as is equal Lo that proportion which the amount o€ the sums secured by this Mo*Lgage itmne-
<br />•distely prior to the date of faksng bears to the fair market ~=slue of tfse 1?roperty immediately prior to the date of
<br />taking, with the balance-af the proceeds paid tp Borrower:
<br />If the Property is abandoned Ity Eorruvver ar if after notice by Lender to Borrower that the condemnor offers
<br />to make an aiirard or settle a eiaiin €or damages; °Hatroarer fails to respond t-0 Lender within 30 days of the date
<br />of stied notice; Lender is authorised to collect. and apply.€he proceeds: at Lender's option either to restoration or
<br />repair of the Property or to the soles secured by this liortgsge.
<br />T3nIeas Leader`and Borrower othenvise agree in writing, any such applieattap of proceeds to principal shall
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